A bill that could have caused some problems for sweepstakes casinos in Hawaii was put on ice this week.
The House Committee on Judiciary & Hawaiian Affairs deferred Senate Bill 3281 on Wednesday. The bill would have created a criminal offense of promoting illegal electronic gambling devices.
While the language largely was meant to target electronic machines at illegal gambling halls in Hawaii, text in the legislation did mention “sweepstakes gambling machines.” The loose definition could have given Hawaii the ability to go after dual-currency gambling used by online sweepstakes casinos.
What happened to the Hawaii bill?
A group of Senate sponsors introduced the bill to “safeguard communities against illegal gambling devices.” The Senate unanimously passed SB 3281 earlier this month.
During Wednesday’s hearing, the JHA Committee heard from two testifers, one from the Office of the Public Defender and another from the Honolulu Department of the Prosecuting Attorney. Both were against the bill as written.
First Deputy Prosecuting Attorney Thomas Brady recommended a new bill with provisions provided by his office. Rep. David Tarnas, chair of the JHA Committee, said that would derail the process, as the legislation already passed the Senate and would need to restart.
Tarnas recommended deferring the bill after the hearing.
“If we pass this bill, it’ll cause problems,” Tarnas said. “I think we should take this one step at a time. I recommend the prosecuting attorney to come back with a new bill next year.
Hawaii gambling landscape
Hawaii is one of two states, along with Utah, with no form of legal gambling. Local law enforcement battles illegal gambling rooms, a common topic during hearings on topics related to any gambling legislation.
The past few years have seen some progress on potential sports betting passage in Hawaii. In 2025, a bill made it to a conference committee after the House and Senate passed different versions of the legislation. Gov. Josh Green indicated he would have signed the bill.
This year, sports betting efforts appear to have stalled after heavy opposition testimonies in committees. Still, there is an ongoing study committee on gambling opportunities in Hawaii that will conclude later this year.
